What AI is doing to asset management operations
Artificial intelligence (AI) and machine learning (ML) are technologies subject to errors of pessimism as well as errors of optimism. Predictions of their eventual impact range from dystopias in which machines reduce human beings to helots, through mass, machine-led unemployment, to Utopias of universal leisure in which all the work is done by machines. In the financial services industry, meanwhile, practical applications of AI and ML are yielding substantial returns in the detection of errors and anomalies. The returns certainly include savings in labour costs but also increased fulfilment at work as dreary jobs are automated, and the quality, productivity and output of other forms of work are enhanced. But the highest returns of all come from cumulative innovation, as AI and ML uncover previously unknowable or impractical opportunities to create new and improved services. Dominic Hobson, co-founder of Future of Finance, asked Bob Suh, former chief technology strategist at Accenture and founder and CEO of AI in financial services venture OnCorps, to share the counter-intuitive lessons he has learned from combining a rich understanding of human behaviour with ML algorithms in the asset management industry.